Information & Communication Technologies

In-vehicle Payments

An Innovative Approach Creates New Retail Avenues and Revenue Streams with Personalized Services

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Published: 25 Oct 2016

Financial institutions have identified in-vehicle payment as a fantastic opportunity to expand their footprint in online payment solutions by leveraging tokenization and check-out payment services. This is not an easy task as car manufacturers are reluctant to open up access to the vehicle’s infotainment system in order to retain control of the quality process and also to maintain vehicle security by limiting the number of providers that have access to it. MasterCard, Visa, and PayPal have all demonstrated daring in-vehicle payment solutions, partnering with original equipment manufacturers (OEMs), car manufacturers, or major fuel station organizations.
This analysis of the in-vehicle payments landscape will answer the following questions for a global audience:
• What are the new markets that payments solutions providers are now targeting?
• Who are the major participants in the in-vehicle payments ecosystem?
• What does the competitive environment look like at present?
From the payments industry perspective, vehicles will increasingly be considered one among all other connected objects, albeit with strong security requirements and huge market potential. Indeed, the connected car and the autonomous car will definitively change the travel experience. People will have more time for entertainment as well as time to purchase digital or physical goods during the journey.
Ecosystem participants that could benefit from the growth of in-vehicle payments include vehicle manufacturers, technology companies, infotainment system manufacturers, and traditional payment solution providers.